Keep These Documents Ready While Refinancing Your Home Loan | Kotak Mahindra Bank - Home Loan Stories
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11 MAY, 2022

Home loan balance transfer permits you to transfer your outstanding home loan of your existing lender to another lender at lower rate and/or for longer repayments tenures. Lower rate of interest availed through the transfer option assists you to lower your home loan EMI and overall interest outgo. This option is particularly beneficial for you if you availed a home loan at a higher rate of interest and now qualify for a much lower home loan interest rate due to improved credit profile.  

However, before you avail the home loan transfer option, there are certain documents required for a hassle-free processing. As the transfer option is considered an application for a new home loan, specific home loan balance transfer documents are the same as documents required for home loan processing. Certain home loan documents like identification proof, income proof, address proof etc., are also required during home loan transfer processing.

Check out the major home loan balance transfer documents:

Initially, you must collect various documents from your current home loan lender. These documents are required by your new lender for transfer application processing.

  • Consent letter

You must inform your existing home loan lender about your transfer decision through a formal application. Along with the application, ask your lender to hand over a consent letter. This letter is necessary for your new home loan lender to move ahead with your transfer process.

  • NOC (no objection certificate)

Your current home loan lender must provide an NOC mentioning that they have no problem with the home loan transfer.

  • Loan agreement

A loan agreement or sanction letter from the existing lender is a must for the transfer. This agreement contains various clauses like prepayment and foreclosure clause, your reset or force majeure terms, additional security cover, etc.

  • Foreclosure letter

This letter mentions your loan has been foreclosed with zero outstanding balance. You can get this letter once your new lender settles the outstanding loan with your previous lender.

  • Home loan statement

The statement contains specifics linked with your home loan. These include your EMI repayment history, and month on month record. The statement also reveals your overall outstanding balance.

  • Property documents

Necessary property documents required to be submitted to your new lender are:

  • Registration certificate
  • Stamp duty document
  • Papers stating property ownership
  • Post Dated Cheques

Make sure to collect all the post-dated cheques from your existing home loan lender. Note that these cheques were provided to the lender when availing the home loan.

KYC documents required by the new lender:

Identification proof

  • Voter ID card
  • PAN
  • Aadhaar
  • Driving license
  • Employment ID card by the NREGA

Address proof

  • Driving license
  • Aadhaar
  • Passport
  • Voter ID card

Financial documents

For verification of your income and repayment capacity, your new lender will ask for your financial proof. These include:

  • Past six months bank statement
  • Employment documents
  • Latest salary slips
  • Form 16

Apart from the above required home loan balance transfer documents, there are other documents that may be required for a hassle-free processing experience. These documents include employment contract/appointment letter, your passport size photo, duly filled balance transfer application form etc. Note that documents required may differ from lender to lender. So, before you apply for a home loan balance transfer, ensure to check with the lender the necessary documents you must keep handy.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.